Home > Uncategorized > Market update. Invoice and Trade finance

Market update. Invoice and Trade finance

It is maybe a good time for an update on the current invoice and trade finance market. You will have to accept my apologies for not naming names or giving direct indicators as to who is doing what. Frankly that information is for me to know and for you to hopefully exploit. Fortunately the last two months have produced more leads than in any previous similar period, which is in itself striking given that December and January are traditionally slow. I would like to believe this is due to my commitment to service being fully appreciated in the market.

Enough of that and here are a few observations

– A high profile lender has taken a couple of hits which has led them to reassess their lending criteria. However, despite rumours, they are certainly not “closed for business”. That I can verify

– Another major lender took a very heavy hit which has resulted in quite a row between their uk arm and parent. This has taken the wind out of what had been a strong push for new business

– The number of lenders active is continuing to increase. Does your account or broker explain to you there are over 50 options? Significant new players will be seen this year and one recent entrant in the south is proving to be very active indeed

– But bad deals abound. I have just heard of a business that has signed a “3.9% per month per invoice arrangement” with a major bank and is regretting it to the extent that they may cease trading. Of course it is caveat emptor but the requirement for brokers has never been more significant.

– The option to use online facilities continues to appeal. The rates are dropping and the criteria shifting in the right direction and this is a real challenge to established lenders. But there are possible fault lines

– Trade finance is becoming more competitive. I am receiving a number of enquiries and there is slightly more scope than previously although the options are not what they could be. However a couple of lenders are proving to be very enterprising

– Expect a major push for business from an american lender with a presence in this country. They have hired and extremely well respected and well connected friend of mine as managing director in the uk

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